Utility firm PSEG beats Q3 profit expectations on higher power pricing 

Overview

• PSEG Q3 adjusted EPS of $1.13 beats analyst expectations

• Net income for Q3 rises to $622 mln from $520 mln in 2024

• Company narrows 2025 non-GAAP earnings guidance to $4.00-$4.06 per share

Outlook

• PSEG narrows 2025 non-GAAP operating earnings guidance to $4.00-$4.06 per share

• Company reaffirms 5%-7% non-GAAP operating earnings growth outlook through 2029

• PSEG plans $22.5 bln to $26 bln capital investment over five years

Result Drivers

• NEW RATES - PSEG's Q3 results reflect the impact of new electric and gas rates from the October 2024 base rate case settlement

• REGULATED INVESTMENTS - PSEG invested $1 bln in Q3 and $2.7 bln YTD in energy infrastructure and efficiency programs

• NUCLEAR OPERATIONS - Hope Creek unit completed a 499-day run, extending its fuel cycle to 24 months for increased output

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 8 "strong buy" or "buy", 14 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the multiline utilities peer group is "buy"

• Wall Street's median 12-month price target for Public Service Enterprise Group Inc is $89.00, about 9.5% above its October 31 closing price of $80.56

• The stock recently traded at 19 times the next 12-month earnings vs. a P/E of 21 three months ago

Press Release:

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